2005 News Story

SADAFCO to offer IPO for about one third of its shares

The Saudi Dairy and Foodstuff Company (SADAFCO ) announced yesterday that starting Monday April 25, it will be offering to Saudi investors 30 percent of its shares at SR260 [about U.S.$70] per share. Out of a total of 6.5 million, 1.95 million shares will be offered in the Initial Public Offering (IPO). Of these, 195,000 (ten percent of the offering) are reserved for institutional investors, with the rest for individuals. SADAFCO Managing Director Ahmed Mohammed Hamid Al-Marzouki commented that the company has a solid and steady track record of growth. The transaction will be underwritten by the National Commercial Bank (NCB), which also acts as financial adviser. The IPO will be open until May 4, and share allocations will be announced on May 8.